InSightec (~22% owned by Elbit Medical, ~18.5% fully diluted) recently announced its Q318 results. Revenues, which are based on the sale of ExAblate systems and corresponding annual service contract costs and consumables, were $8.1m, up 105% from Q217 ($4.0m). Notably, InSightec announced that it had received FDA approval for ExAblate Neuro compatibility with Siemens’ MR scanners. We expect this will provide InSightec with the opportunity to expand its presence in the global MR market.

Gamida Cell recently announced a $53m IPO on Nasdaq under the symbol GMDA, for 6.25m ordinary shares at $8.00 per share. Following this offering, Elbit Medical now owns ~11% of the company (previously ~18%). Gamida Cell also presented an update regarding its Phase I/II of NiCord as a graft evaluating immune reconstitution (IR) after myeloablative chemotherapy versus non-manipulated cord blood and traditional unrelated bone marrow transplant at ASH.

On 6 September, Elbit Imaging sold approximately 5% of Elbit Medical’s outstanding share capital to Exigent Capital Group for NIS11.1m. Two months later, Elbit Imaging sold an additional 10% of Elbit Medical’s outstanding share capital to the group for NIS21.3m. According to reports from 21 November and 28 November, Elbit Imaging sold an additional 8% and 3% of Elbit Medical’s outstanding share capital for NIS18.6m and NIS6.7m, respectively. Following these transactions, Elbit Imaging now owns ~63% of Elbit Medical (previously ~89%). The proceeds from these transactions will be used to repay their debts. 

We are decreasing our valuation to NIS424m NIS1.83 per share from NIS444.4m or NIS1.92 per share, which was mainly driven by the decrease in value of Elbit Medical’s stake in Gamida Cell following the IPO and offset by the increase in strength of the US dollar (NIS3.69/US$). We expect to update our valuation with the announcement of new deals and as the portfolio companies advance through the clinical pipeline.